5 pitfalls to avoid when buying property in Spain
Buying a property in Spain is attractive to many foreigners, especially the French, who are looking for a pleasant climate, a sunny lifestyle and more affordable prices than in France. However, as in any foreign market, buying property in Spain has its own particularities, which you need to be aware of to avoid unpleasant surprises.
Here are the 5 main pitfalls to avoid when buying property in Spain, along with practical advice on how to secure your project and invest with peace of mind.
1. Failing to check the legal status of the property
One of the first pitfalls concerns the legal status of the property. It is not uncommon in Spain to come across properties that are not in order, especially in rural or older areas.
- Make sure that the property is correctly registered with the Land Registry.
- Check that there are no mortgages, debts or planning charges.
- Ask for the nota simple, an official Spanish document that summarises the legal details of the property.
Failure to carry out this check could result in the purchase of a property with hidden debts or even in an illegal situation, with the risk of demolition or substantial fines.
2. Underestimating purchase costs
The advertised price does not always reflect the real cost of your purchase. In Spain, ancillary costs can represent between 10% and 13% of the price of the property.
These include
- Notary and registration fees
- Transfer taxes (ITP) or VAT (for new properties)
- Agency fees (sometimes payable by the buyer)
- Any legal fees (lawyer, translator, etc.)
Tip: Plan ahead to avoid unpleasant financial surprises at the end of the process.
3. Not using an independent professional
In Spain, estate agents are not always regulated in the same way as in France. Anyone can practise the profession, which increases the risk of mistakes or abuse.
Don't rely solely on the agency selling the property: their aim is to conclude the sale, not necessarily to protect you.
We strongly recommend that you :
- Use an independent property lawyer ("abogado"), who will check all the legal documents.
- Work with a competent notaire, although their role is more limited than in France.
- Have all documents translated if you are not fluent in Spanish.
This represents an additional cost, but it is an essential guarantee of security when buying abroad.
4. Forget about co-ownership or town planning regulations
Before you buy, make sure you know what rules apply to the property:
- Are there any restrictions in the community of owners (co-ownership)?
- Are any works planned? What are the monthly charges?
- Can the property be rented out on a seasonal basis? Some regions impose specific tourist licences.
- Are the swimming pool, garden and garage included in the title deed?
Forgetting these points can prevent you from making the most of your property or generate unexpected costs in the long term.
5. Signing a compromis without the necessary guarantees
The Spanish "compromis de vente" ("contrato de arras") is a strong commitment: if you withdraw without justification, you lose the deposit (often 10% of the price).
Before signing anything :
- Check all the legal documents (planning permission, etc.).
- Make sure the seller is the legal owner.
- Include a suspensive clause if you need finance.
A lawyer can also help you draw up a balanced contract that is in your best interests.
Practical advice for a successful property purchase in Spain
As well as avoiding these five common pitfalls, here are a few recommendations for securing your investment:
- Obtain your NIE (Foreigner Identification Number) before taking any steps.
- Open a Spanish bank account to facilitate local transfers and payments.
- Find out about the land registry and local taxes (IBI, refuse tax, etc.).
- Visit several properties and areas, and avoid rushing into things.
- Prepare an investment strategy if you plan to rent: short-term, long-term, seasonal?
Conclusion: securing your property project in Spain
Buying property in Spain can be an excellent opportunity, whether it's for a second home, a rental investment or a long-term move. But to make a success of this project, it's essential to surround yourself with the right people and avoid the classic mistakes.
Don't let a dream of sunshine turn into an administrative or legal nightmare. Take your time, get informed, and be supported by competent professionals.
Our agency will be with you every step of the way to secure your investment and find you the ideal property, at the right price and without stress.